- 2 years ago
Tim Xie, CFO of QuantaSing, was recently interviewed by Benzinga.
QuantaSing is a leading online service provider in China dedicated to improving people's quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China's online adult learning market and China's adult personal interest learning market in terms of revenue.
The company recently acquired Kelly's Education in its bid to expand its presence in the US.
QuantaSing is a leading online service provider in China dedicated to improving people's quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China's online adult learning market and China's adult personal interest learning market in terms of revenue.
The company recently acquired Kelly's Education in its bid to expand its presence in the US.
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NewsTranscript
00:00Welcome, Benzinga Nation.
00:04You know what we love to do is have executives from publicly traded companies on so we can
00:08ask them the questions that you've been wanting to hear.
00:10And today I've got Tim Xia, who is the CFO of Quantasing, ticker on the NASDAQ is QSG.
00:15Tim, welcome to the show.
00:18Thank you for having me.
00:19Thanks, everybody.
00:20Absolutely.
00:21Let's kind of, you know, before we dive into the nitty gritty of things, give me a quick
00:24overview of what is it that your company does.
00:27Quantasing is an online education platform and we commenced our business in July 2019.
00:35And also, until now, we have accumulated over 112 million registered users and we grow up
00:45as the largest online adult learning platform currently.
00:49And also, we provide both the not only the online courses, but also other services to
00:56our individual learners and our corporate partners currently.
01:02Tell me a little bit about what is unique about the Chinese adult learning market and
01:06how you're shifting your offerings for the global market itself.
01:10I think in China, because China has a big population and also the population is growing,
01:17especially for the middle-aged and elderly people because of the aging population.
01:22And the lifetime learning concept is very popular among the Chinese people and people
01:29are seeking opportunities, especially the affordable and interesting opportunities to
01:35grow up their self, both for their personal life and also the skills upgrading.
01:41Currently, we provide the interest-based courses, typically for the middle-aged and elderly people.
01:49So we are addressing the mass public people's learning demand in China.
01:53I'd love to get some insights here because you had a recent trip to the U.S. where you
01:57met with investors and stakeholders.
01:59I'd love to know what came from this trip.
02:01Yeah, since our listing in the U.S. in January 2023, we have been listed for just over one year.
02:11But currently, because during that period, we have very limited resources to go abroad
02:17because of COVID-19 and other traveling issues.
02:21So since that time, we have been listed for a long time.
02:25And also we are very glad to talk to and to communicate to the global investors, especially
02:33because we listed in the U.S., we travel to the U.S. and seek to communicate to investors,
02:39to our friends, and also to the people we encounter.
02:45And we have joined several meetings, especially the AI and technology conference, which is
02:53a very hot topic currently.
02:56And we have met a lot of wonderful companies.
02:59And also we are seeking maybe some business opportunities and cooperations worldwide with
03:04such kind of good companies in the U.S. and also global-wise.
03:09So I think communication is very important, to exchange ideas, to always keep the mind
03:16open to seek opportunities is our goal.
03:21Yeah, speaking of opportunities, as you continue growing in the U.S., you have the acquisition
03:27of Kelly's Education, right?
03:29I'd love to know what does that mean for QuantumSing and especially your plan for the U.S. growth-wise?
03:35How does that help out here?
03:36Yeah, I think for QuantumSing, it's just, even though we have been listed, we are still
03:41a young company.
03:42We have maybe just around five years of operating history, and we have grown up from zero to
03:49the biggest one in this industry sector in China.
03:53But in the past years, we have been only operating in mainland China.
03:58So as grown up at the largest one, we have accumulated a very solid technology infrastructure
04:07and also the operating experiences and talents so that we can, we think, also since we are
04:15a listed company in the global financial market, we are seeking aggressively for the business
04:23expansion, both domestically and overseas.
04:27So starting from the acquisition of Kelly's Education, which is a very small but boutique
04:35online KTL, the Children's English and Mentoring Training Platform in Hong Kong, I think this
04:41is just our start.
04:43And Kelly's Education is very solid in terms of their founding team and their working team
04:51and also their ambition to grow up as a global language learning platform.
04:58So I think starting from small and be conservatively and cautious for the growth, especially with
05:05the area we are not so familiar, so that we can keep both the financial performance solid
05:14and healthy, in a healthy position, and also be very open and active in the overseas business
05:23expansion.
05:25So for Kelly's Education, I think, even though it's not a big company and currently it's
05:33mainly operated in Hong Kong, and Hong Kong is a very international city, I think this
05:40is a very good start for our, maybe some technology capability and our funding resources
05:48for the company, for their team to go into more area and go into the overseas market
05:55to sell more clients and individual learners.
05:59Yeah, I look forward to seeing how that partnership pays dividends for you.
06:05You have an upcoming appearance.
06:08Mr. Chow has an upcoming appearance here on a panel at the ASU GSV Summit in San Diego.
06:16What's going to be some of the things that he's going to talk about?
06:19I think because Kelly's Education started the platform as leveraging its technology
06:25and it's run as a platform purely online since its commencement of the business.
06:33And Mr. Chow has a very strong background in terms of professional expertise and the
06:39working experience, both in the multinational corporations and startup companies, and also
06:44NASDAQ-listed companies, and he has a very strong background in computer science.
06:49And also, I think more importantly, it's his mission for the training and to grow up, to
06:57help the children grow up confidently and with very good communication skills.
07:03So I think he will talk about maybe his vision in terms of the new technology application
07:09in the platform, and also his thinking about some new topics, like the Hot Topic AI, its
07:17application in the platform, and in the servicing process to our individual learners.
07:27So I think he will be sharing his thoughts at that event, and they're looking forward to that.
07:37Well, I'll tell you what, you brought up the Hot Topic, so let me end it with the Hot Topic.
07:41How do you think education and learning will be changed with AI?
07:45I think for our experience, because we operate as a technology company, and we are
07:54strongly a data-driven company, and so in the past we operate purely online, and so we have
08:02accumulated a lot of technologies, including some algorithms and some data-driven technologies,
08:09especially some new applications in the live streaming system and other systems in our
08:15business. And we strongly believe that technology will change the business process, both for the
08:22platform itself and also for servicing the customers, the learners. So up to now, we have
08:31continuously updated our technology base, and we have a strong technology team. We
08:38applied and we tested for especially the new technologies in each aspect of our business
08:47process. For example, I think technology should be, especially for the companies like us,
08:55we operate in the education sector. We believe that education technology should be embedded
09:04into each aspect of the business flow, so that we can smooth and streamline the whole process
09:13to upgrade our service quality to our individuals. So the final result should be
09:19the servicing quality improvement, so that our learners can be satisfied with the new,
09:30improved business process leveraged by the technology. So for example, we currently use AI
09:38as the very advanced technology in our live streaming process to fine-tune our
09:47lecturers' performance, and so that they can improve their skills based on the AI's
09:54assistance, and so that they deliver the service in a very improved manner.
10:03And also for some tutoring assistance services, because we deliver all of our services online,
10:11we have a lot of behavior data, and we can identify how to assist our learners to learn better,
10:18to interact with the platform better. So we use a lot of algorithms and AI technology to smooth
10:26the whole process, so that we can both save the cost and improve the service quality.
10:32So that's my view for AI of the education. I think all of the technology, including AI,
10:38should be applied in the real world and to upgrade the service level to our customers.
10:45So always customers first. Yeah, I couldn't agree more with you. I use AI in my daily life,
10:50and not only does it speed up the process I'm trying to get through, but also optimizes it so
10:55I can do it better and make my life easy in the long term as well. Tim, it's always a pleasure
10:59to talk to you. Thank you so much for joining me here today. Great, thank you. Thank you very much.
11:03Absolutely. And that was Tim Xie, who is the CFO of Quantasing. Ticker on the NASDAQ is QSG.
11:10And for all things finance, visit Benzinga.com.